Coal can be mined using surface or underground methods, with the choice of mining method determined by technical and economic factors. The most critical technical factors include coal seam thickness, depth, seam inclination, and surface topography.

Each of these technical factors is assessed to determine its conditions considering its economic feasibility, including the coal specifications, mining methods to be used, and the target market. Key economic parameters for coal mining, whether surface or underground, include costs associated with specific land use at the location, material handling costs over the coal seam (surface method), and coal prices.

Coal prices are directly related to coal quality, primarily dependent on its calorific value and sulfur content. Shallow coal deposits are generally extracted using surface mining, while deeper deposits are mined using underground methods. There are also situations where a surface mining approach is initially used, and if sufficient reserves remain, underground mining is developed. In cases of limited remaining reserves, other mining methods such as auger mining or highwall mining may be employed.

Surface mining offers several advantages over underground mining. Generally, the economic return rates for surface mining are very high (85 to 90+ percent), compared to 40 to 70 percent for underground mining. Surface mines typically exhibit higher productivity than underground mines, and health and safety statistics for surface mining are generally better than those for underground mining.

Coal mined from the surface is usually processed simply and screened in preparation for market, whereas underground-mined coal often requires more processing to enhance its quality. The cost per ton of coal mining using surface methods is generally lower compared to underground methods.